Beidahuang Company Profitability Analysis Based On DuPont Model

This paper selects the representative agricultural enterprise of Beidahuang,focusing on its management and financial status.At the same time,the Du Pont analysis model is used to analyze the operation and profitability of Beidahuang's assets.On this basis,the analysis of cash flow content,assets and capital structure indicators is further introduced.Finally,it is concluded that the factors lacking the profitability of Beidahuang Company are mainly due to high cost,low final profit,slow asset turnover,low utilization efficiency and unreasonable capital structure.The main reason for these factors is that the rising cost of agricultural products and the decline in prices lead to low net profit;the previous year's asset redundancy and utilization rate are not high;the Beidahuang company is controlled by the state,and the managers prefer to issue stock financing,and the debt burden is low.In response to the problems of Beidahuang Company,it proposes rationalization proposals such as reducing costs,improving asset utilization,and exerting financial leverage.This will provide reference for Beidahuang to improve its business management model,and also help other companies in the same field in the process of development and profitability.The Du Pont analysis model used in this paper is a comprehensive financial analysis method.The analysis idea is to use the relationship between several main financial indicators to comprehensively and comprehensively analyze the financial status of the enterprise.The return on net assets is decomposed step by step and becomes the product of different financial ratios.For the traditional Du Pont model,only the balance sheet and income statement in the financial statements are analyzed.This paper adds the analysis of the cash flow statement.Using this method will help to analyze and compare the business performance of the company in depth,identify the problem,and propose effective strategies to improve it,thereby improving the profitability of the company.This article is divided into five parts,The first part is an introduction.This paper introduces the research background and significance,research objects and methods,research ideas and framework,and introduces the main contributions of this paper.The second part is a review of relevant theories,mainly the research review of Du Pont analysis models and the definition of related concepts at home and abroad.Briefly introduce the theoretical knowledge involved in this article and provide theoretical support for the analysis below.The third part introduces the operation and financial status of Beidahuang Co.,Ltd.,and understands the company's operating status and financial status.The fourth part is to use the Du Pont analysis model to study the profitability of Beidahuang Co.,Ltd.The data of the financial statements of the annual report of Beidahuang Company from 2012 to 2017 were selected for Du Pont analysis,and the average value of the same industry enterprises and the advanced enterprises of listed companies were further analyzed to evaluate their operational capabilities.The fifth part is the problems existing in the operation process of Beidahuang Company,and proposes corresponding countermeasures.The sixth part is the research conclusions and prospects,and points out the shortcomings of this paper.This paper uses literature research method,data analysis and comparison method to analyze Beidahuang company,tries to find out the factors affecting the company's profitability,and proposes improvement suggestions for the problems found.It also hopes to provide reference for the development of other enterprises in the industry.